Survival Determinants for Online Retailers

Survival determinants can influence important strategic decisions. Analysis of longitudinal data on 418 online retailers in fourteen Bizrate product categories yields insights into key survival determinants. Survival tends to be easier for introductory versus growth stage entrants. Survival, however, is more difficult for e-tailers who sell touch and feel products and for pure e-tailers who do not have the support of either brick and mortar stores or catalog operations. While introductory stage entrants have higher survival rates versus growth stage entrants, there is no significant impact for rank order of entry or pioneer leadtime. These mixed results point to modest early mover advantages in online retailing. While some e-tailers like Amazon.com benefited from moving early, many others suffered from pioneer burnout.